Cash-strapped foreign countries often tax expensive properties more heavily than the U.S. does. Still want to flee?

Wealthy Americans considering giving up their citizenship to avoid higher taxes might want to hold on to their U.S. passports. Living abroad could result in bigger tax bills for Americans, especially if they want to buy an expensive abode.

While U.S. states collect, on average, just 0.8% on the purchase of property worth $3.5 million or more, the governments of deficit-plagued countries...